Anti Corruption Week 2017: “Monopoly on homologation of vehicles and public debt forgiveness for water bottling companies"
04/12/2017
GAP Institute and the Group for Legal and Political Studies (GLSP) within the "Anti-Corruption Week" supported by the US Embassy in Kosovo, held today a roundtable discussion on monopoly on homologation of vehicles and public debt forgiveness for water bottling companies using it for commercial needs.
Nora Latifi - Jashari, Executive Director at GAP Institute, stated that the creation of the monopoly in homologation of vehicles and the forgiveness of debts towards water bottling companies are two separate decisions of the Government of Kosovo which have damaged the competition, have sidestepped the Kosovo Assembly and have favored only one category of private businesses to the detriment of the general interest of the citizens. Both of these decisions violate applicable laws, so besides that they should be revoked, they should be investigated by the competent authorities. Monopoly on vehicle homologation dates back to the end of 2008, when the Ministry of Transport and Communications (now the Ministry of Infrastructure) has signed an exclusive contract with the company "Eurolab" for the homologation of vehicles registered for the first time in Kosovo, This contract guarantees “Eurolab”exclusive ten-year activityfor the period 2009-2019. In addition to avoiding competition in awarding this contract and arbitrary setting of prices for homologation, through Administrative Instruction on vehicle homologation no.2008/08, Ministry of Infrastructure has made a number of other legal violations.
Berat Thaqi, Political Analyst at GAP Institute, presented the findings of the report on vehicle homologation and public debt forgiveness for water bottling companies. According to the aforementioned instruction, the owners of the vehicles are obliged to perform the first technical check at the authorized homologation institution. In addition to the monopoly on homolgationand the first technical control, this administrative instruction establishes a third monopoly, defines the Authorized Homologation Center as authority which supervises other Licensed Vehicle Technical Control Centers. A similar case of violation of laws is also the decision of the Government of Kosovo taken on October 3rd 2017 for the clearance of debts for water bottling companies. This decision contradicts the definition of the ownership of water resources of the Republic of Kosovo, because this decision has benefited a very small group from a national asset. Also, as in the case of homologation, the Government of Kosovo through its decisions directly violates the Constitution of the country.
Rexhep Kadriu, Deputy Minister at the Ministry of Infrastructure, indicated that the current government cabinet and the Ministry of Infrastructure are ready to liberalize the market of vehicle homologation and to supplement and amend legal acts. At present, the ministry is preparing an administrative instruction, which is also in public debate until December 6th 2017, where all the experts of the field of communication and members of the civil society are invited to give their remarks and suggestions. He praised the report recommendations given by GAP Institute and also stressed that the ministry will make public all signed contracts and agreements in order to increase transparency regarding this issue.
Valon Prestreshi, Chairman of the Kosovo Competition Authority (KCA), indicated the complaints received by the Ombudsperson, civil society and the media for investigation of the vehicle homologation market as a monopolized market in this field. At the beginning of 2017, KCA started monitoring this market, initially collecting data from relevant institutions respectively from the Ministry of Infrastructure. KCA is paying special attention to this case and soon will come up with recommendations and decision to give a final verdict to this phenomenon, but only in terms of competition policy. He also emphasized that KCA encourages governmental institutions that whenever the competition field is concerned, consult with the KCA in advance in order to take decision in line with competition law.
Other members of the Assembly of Kosovo, representatives from the Ministry of Infrastructure, the Ministry of Environment and Spatial Planning, as well as members of civil society organizations participated in the debate.
To read the full report on vehicle homologation click here, and to read the reaction on GAP Institute click here.
